Agreed. if it was such a good business model both Sony and Nintendo would follow MS with their own day one games services in a heart beat.
Lets not sugar coat things shall we? MS was forced to put their not so appealing commercially and below than average reviewed 1st party games day one on Gamepass due to the Xbox one failing to sell compared to the competition. It was out of desperation, not design. You can't sell software if you didn't sell hardware. Enter Gamepass.
Gamepass is most probably a money sink that only Ms's deep war chest can sustain. That is why they always hide the profits made (or didn't make) in their financials.